The European energy landscape is shifting fast—renewable energy is set to make up more than 50% of total output by 2050. But as clean energy demand grows, so does the challenge of storing it efficiently. Access to energy storage is still limited, and the existing commercialisation of storage assets comes with significant challenges for asset owners, including long contractual lock-ins and volatile revenues.  

That’s why we’ve backed terralayr, a tech startup shaking up the energy storage space with its “energy flexibility as a service” model.

The problem

In Germany alone, 6 TWh of renewable energy is wasted annually due to grid bottlenecks, which costs the country €2.2 billion and leads to 5 million tonnes of unnecessary CO2 emissions. The need for scalable, efficient energy storage solutions is more urgent than ever. 

However, traditional energy storage systems need to be improved to meet the needs of the fast-evolving renewable energy sector. Currently, companies in need of energy storage, including renewable energy producers and utilities, as well as large power consumers such as data centres and industrials, cannot access energy storage when needed. Building physical storage assets is a long and costly process, typically outside the core business model. The market for tolling agreements – long-term rental contracts of storage assets – is slow and inefficient. 

At the same time, asset owners are looking for alternatives to existing solutions for commercialising their assets. Current solutions do not meet their needs for more stable returns and less reliance on one individual battery trader.    

This is where terralayr comes in. 

The solution

terralayr offers a new approach, providing "energy flexibility as a service" through a cloud-based platform. Rather than relying on a one-to-one relationship between physical battery assets and the battery traders responsible for the commercialisation of the asset, their platform virtualises energy storage—allowing a wide range of customers, from power producers to data centres, to access storage capacity on demand without owning infrastructure. In other words, terralayr is for energy storage, much like what AWS is for cloud computing.

By aggregating their own and third-party battery assets, terralayr delivers on-demand storage capacity while reducing the degradation of the batteries and improving returns for battery owners. This model unlocks unprecedented scalability and flexibility in the energy storage market.

Momentum in Germany

You can’t have an impact in Europe without Germany. With renewables already accounting for over 56% of the country’s electricity—outpacing the statistic for the wider region listed above—energy storage is essential to balance supply and demand.

terralayr has secured development agreements for over 5GW of battery storage capacity in Germany, placing them at the heart of Europe’s energy transition. Their first asset went live in May 2023, with several more in construction, demonstrating their ability to scale quickly in this critical market. Success in Germany solidifies its position in the most significant European market and sets the stage for expansion into other regions facing similar challenges.

Why we’re backing terralayr

Proven technology: The company’s cloud-based platform virtualises energy storage, allowing customers to access storage "as a service" just as they would access cloud computing resources. This model unlocks both economic and environmental benefits by providing greater flexibility and efficiency for users, and it has already proven successful with their operational assets.

Huge potential: As terralayr CEO Philipp Man puts it: “In a net-zero world, energy storage is the key missing piece to drive the integration of all the renewable generation assets hitting the grid. Our positioning as a fully integrated storage aggregator enables us to unlock the fly-wheel from this future multi-trillion dollar asset class.” With an ever more volatile electricity supply, battery storage will play a crucial role in stabilising the grid and in directly serving both large generators and off-takers of electricity with the storage needed to optimise their electricity production and consumption. terralayr is in a prime position to become the leading provider of these services.

Looking ahead

terralayr’s innovative approach is critical for making renewable energy scalable, flexible, and accessible. As our General Partner, Tove Larsson, puts it, “terralayr’s ‘flexibility as a service’ is like AWS for energy storage—offering seamless solutions to manage renewable energy efficiently. We’re excited to support them as they push the boundaries of what’s possible.”

In addition to our backing, terralayr has attracted a strong roster of investors, including Creandum, Earlybird, Picus Capital, and the RIVE Infrastructure Impact Fund—a testament to its groundbreaking vision and technology. 

Curious to learn more? Visit their website: https://trlyr.com/